The October CPI report sparked optimism in the stock market and speculation about slower interest rate increases from the Fed.
Inflation’s stranglehold on the U.S. economy may finally be easing, a new Bureau of Labor inflation report for October indicated.
Consumer inflation reached 7.7% in October from a year earlier, down from the 8.2% year-over-year increase reported in September, according to the Thursday report. The jump is the country’s most moderate since January and significantly lower than expected, marking a long-awaited tapering of inflation’s steep climb this year.
Prices only grew 0.4% from September, the report said, and core inflation — a more reliable measure of inflation excluding volatile food and energy prices — rose just 6.3% from the previous year.
“It’s going to take time to get inflation back to normal levels — and we could see setbacks along the way — but with gas prices decreasing, grocery store costs easing, and millions saving on health insurance, we’re keeping at it to get families help with the cost of living,” President Biden said in a statement Thursday.
